There is a large deal brewing in the consumer appliances space and it has been in the making for quite some time now the exclusivity that Crompton Greaves Consumer has with Butterfly Gandhimathi is set to get over in this particular week. Therefore, they are racing against time in terms of closure.

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CNBC-TV18 learned that Crompton Greaves Consumer Electricals is going to buy a majority stake and acquire the company Butterfly Gandhimathi, which is also a good brand and a big brand in the consumer appliances space.

They are going to buy over 50 percent stake for about Rs 1,450 crore for which they have already created an escrow account and are working on closing this particular transaction.

The deal announcement is likely very soon in this particular week is what CNBC-TV18 learned.

It will also trigger an open offer for the rest of the shareholders at the same price at which the deal is being struck between the two parties and the third tranche of the deal is close to about 10 percent of the minority stake in Butterfly Gandhimathi will still be held by the promoters of the company for a lock-in period of one year for any contingencies and for which Crompton Greaves may have a ROFR or right of first refusal and may buy it out from them later.

These are the deal dynamics expected to be announced very soon Crompton Greaves consumer management is said to be in Chennai putting the final touches and to sign the deal.

First Published:Feb 21, 2022 3:15 PM IST